Dessler HRM 12e ch 03 the managers role in strategic HRM

Part I: Introduction Managing Human Resources Today Managing Equal Opportunity and Diversity Mergers, Acquisitions, and Strategic Human Resource Management Part II: Staffing the Organization Personnel Planning and Recruiting Selecting Employees Training and Developing Employees Part III: Appraising and Compensating Employees Performance Management and Appraisal Compensating Employees Part IV: Employee and Labor Relations Ethics, Employee Rights, and Fair Treatment at Work Working with Unions and Resolving Disputes Improving Occupational Safety, Health, and Security Part V: Special Issues in Human Resource Management Managing Human Resources in Entrepreneurial Firms Managing HR Globally Measuring and Improving HR Management’s Results

Chapter 3

The Manager’s Role

in Strategic Human Resource Management

Chapter 3

The Manager’s Role

in Strategic Human Resource Management

Part One | Introduction

WHERE WE ARE NOW…

1 Explain why strategic planning is important to all

managers.

2 Outline the basic steps in the management planning

process.

3 List the main contents of a typical business plan.

4 Answer the question, “What should a manager do to set

‘smart’ motivational goals?”

5 Explain with examples each of the seven steps in the

strategic planning process.

6 List with examples the main generic types of corporate

strategies and competitive strategies.

LEARNING OUTCOMES

7 Define strategic human resource management and give

an example of strategic human resource management

in practice.

8 Briefly describe three important strategic human

resource management tools.

9 Explain with examples why metrics are essential for

identifying and creating high-performance human

resource policies and practices.

LEARNING OUTCOMES (cont’d)

Why Strategic Planning Is

Important

To All Managers • The firm’s strategic plan guides much of what is done by

all to accomplish organizational goals.

• Decisions made by managers depend on the goals set at

each organizational level in support of higher level goals

FIGURE 3–1 Sample Hierarchy of Goals Diagram for a Company

Fundamentals of Management

Planning

1 2 3 4 5

The Planning Process

Make forecasts and check assumptions.

Set an objective.

Determine/develop alternative courses of action.

Evaluate the alternatives.

Implement and evaluate your plan.

FIGURE 3–2 Business Plan Table of Contents

FIGURE 3–3 Acme Consulting Profit and Loss

Specific Measureable Attainable Relevant

How Managers Set Objectives:

SMART Goals

S M A R

How to Set Motivational Goals

Assign

specific

goals

Assign measurable goals

Assign challenging but doable goals

Motivational Goal Setting

Encourage employee participation

Using Management by Objectives (MBO)

1 2 3 4 5

The MBO Process

Set departmental (supporting) goals.

Set overall organizational goals.

Discuss departmental goals with subordinates.

Set individual goals and timetables.

Give feedback on progress toward goal.

The Strategic Management Process

• Strategy

its strategic aims.

• Strategic Plan

weaknesses with its external opportunities and threats to

maintain a competitive advantage over the long term.

• Strategic Management

mission by matching its capabilities with the demands of its

environment.

• Leveraging

underplaying its weaknesses.

Business Vision and Mission

• Vision

evokes emotional feelings in organization members.

• Mission

FIGURE 3–4 Management Objectives Grid

Company-Wide or Departmental Objective:

Double sales revenue to $16 million in fiscal year 2011

FIGURE 3–5 The Strategic Management Process

FIGURE 3–6 Worksheet for Environmental Scanning

FIGURE 3–7 SWOT Matrix, with Generic Examples

FIGURE 3–8 Type of Strategy at Each Company Level

Types of Corporate Strategies

Types of Competitive Strategies

Business-Level Competitive Strategies

Focus/Niche

Achieving Strategic Fit

• The “Fit” Point of View (Porter)

strategy such that the firm’s functional strategies support its

corporate and competitive strategies.

• Leveraging (Hamel and Prahalad)

have and doing more with what you have—can be more

important than just fitting the strategic plan to current resources.

FIGURE 3–9 Southwest Airlines’ Activity System

Departmental Managers’

Strategic Planning Roles

Help devise the strategic

plan

Formulate supporting, functional/

departmental

Department Managers and Strategy Planning

Execute the strategic plans

Strategic Human Resource

to improve business performance and develop organizational cultures that foster innovation and flexibility.

and activities—that produce the employee competencies and behaviors that the company needs to achieve its strategic aims.

FIGURE 3–10 Linking Company-Wide and HR Strategies

FIGURE 3–11 Basic Model of How to Align HR Strategy

and Actions with Business Strategy

Strategic HRM Tools

Strategic HRM Tools

Digital dashboard

FIGURE 3–13 Strategy Map for Southwest Airlines

FIGURE 3–14 The Basic HR Scorecard Relationships

HR activities

Organizational performance

Emergent employee

behaviors

Strategically relevant organizational outcomes

Outline a strategy map

Identify strategically required outcomes

Identify required workforce competencies and behaviors

6 7 8 9 10

Create HR Scorecard

Identify required HR policies and activities

Choose HR Scorecard measures

Summarize Scorecard measures on digital dashboard Monitor, predict, evaluate

The 10-Step HR Scorecard Process

FIGURE 3–15 Three Important Strategic HR Tools

HR Scorecard

A process for managing employee performance and for

aligning all employees with key objectives, by assigning financial and nonfinancial goals, monitoring and

assessing performance, and quickly taking

A graphical tool that

summarizes the chain

of activities that

contribute to a

company's success,

and so shows

employees the "big

picture" of how their

Building A High-Performance Work

that promote organizational effectiveness.

• High-Performance Human Resource Policies

and Practices

HPWS.

performance differences required of an HPWS.

TABLE 3–1 Comparison of Selected Human Resource Practices in

High-Performance and Low-Performance Companies

strategy map

HR Scorecard digital dashboard high-performance work system human resource metric

value chain

HR audit

FIGURE 3–16 Simple Value Chain for “The Hotel Paris”

FIGURE 3A-1 Simple Value Chain for “The Hotel Paris”

FIGURE 3A-2 Revenue per FTE (by Industry)

FIGURE 3A-3 2007 Target Bonus Percentage for Executives

(Percent of Total Compensation, by Organizational Size)

FIGURE 3A-4 Sample Metrics from SHRM Measurements Library

FIGURE 3A-5 Highlights of SHRM® Customized Benchmarking Service

FIGURE 3A-6 Customized Human Capital Benchmarking Report

for [Your Organization’s Name Here]

FIGURE 3A-7 Customized Human Capital Benchmarking Report

for [Your Organization’s Name Here]

TABLE 3–2 Examples of HR System Activities the Hotel Paris Can

Measure as Related to Each Chapter in This Book

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